LCCI Says There Is 200-400% Increment In Prices Of Vehicles In 5 Years

The Lagos Chamber of Commerce and Industry (LCCI) has said that the nation’s economy has witnessed an increase in the prices of vehicles by as much as 200 to 400% in the last five years, adding that not many citizens or even investors can afford that outrageous sum to acquire a car.

The chamber also said that even prosperous corporate organizations have resulted to buying fairly used vehicles for official use, due to the hike in the prices of vehicles in the country.

The Director General of LCCI, Mr. Muda Yusuf, who said this, last week in a chat with Shipping Position Daily in Lagos, also maintained that implication on operational cost is worrisome.

He said: “The economy has witnessed an increase in the price of vehicles by between 200 to 400% over the last five years. Not many investors and the citizens have the capacity to pay these outrageous prices. Even prosperous corporate organizations are now buying used vehicles for official use. The implication of the scenario for operational costs of organizations is worrisome. The auto policy in its present form is most inappropriate for an economy that is heavily dependent on road transportation”

Yusuf however said that from a logistics point of view, the high cost of vehicles in the country has taken a severe toll on the economy of the country, stressing that all aspects of the citizen’s economic and social lives have been negatively affected by this.

“The truth is that, the high cost of vehicles has taken a severe toll on the economy, from a logistics cost and welfare point of view. Practically all aspects of our economic and social lives had been negatively impacted by the situation. This is because over 90% of the country’s freight and human movements are done by road, which implies heavy dependence on cars, commercial buses and trucks”

Explaining further he lamented that, “manufacturers and other real sector investors suffer from high cost of delivery vehicles, sharp increases in haulage cost because of the high cost of trucks; school buses have become unaffordable by many institutions; many hospitals cannot afford ambulances; many corporate organizations have drastically cut down on their fleet etc”

Yusuf also said that vehicle ownership in Nigeria is now beyond most middle class citizens.

“Vehicle ownership is now completely beyond most of the middle class. These unintended consequences and collateral harmful effects on the economy and welfare of citizens are in calculable. This underscores the strategic importance of road transportation to domestic economic integration and connectivity”, he concluded.